Patanjali Foods (PATANJALI) Q4 07/08 earnings summary

Executive summary

• FY08 sales and other income rose 28.06% YoY to Rs 11,075.01 crore; profit after tax increased 58.12% to Rs 159.23 crore.

• Growth reflected higher capacity utilization, branded volumes, sales realization and scale benefits, despite rising raw-material costs and edible-oil prices.

Financial highlights

• Sales and other income reached Rs 11,075.01 crore versus Rs 8,648.29 crore; operating profit (PBDIT) was Rs 430.48 crore, up 44.38% YoY.

• Profit before tax rose 62.19% to Rs 253.74 crore; profit after tax rose 58.12% to Rs 159.23 crore and includes an Rs 8.40 crore provision for earlier-year taxes.

• Edible-oil sales grew 19.89% to Rs 7,378.53 crore; exports increased over 54% to Rs 1,371.93 crore.

• Consolidated sales and other income were Rs 11,726.39 crore and consolidated PAT was Rs 165.83 crore; consolidated basic EPS was Rs 8.98.

Outlook and guidance

• Backward integration plans target palm oil: cultivation MoUs were signed with Andhra Pradesh, Gujarat, Mizoram, Orissa and Tamil Nadu; overseas plantation opportunities were also being explored.

• Production facilities were being expanded for growing soya-crop availability, while mustard-oil capacity expansion and new locations were planned to support branded edible-oil growth.

• Biofuel initiatives included leased land in Madhya Pradesh and plans for Jatropha plantations and biodiesel units using contract farming and government-land models.